Give flat or 1cr to buyer, consumer forum to builder

The Maharashtra State Consumer Disputes Redressal Commission has directed a builder to hand over a 712 sq ft flat at Sion within four months or pay Rs 1.04 crore compensation to an ex-serviceman who had booked the flat in 2005, but has not got possession.

| TNN | Updated: Jan 19, 2013, 06:15 IST

MUMBAI: The Maharashtra State Consumer Disputes
Redressal
Commission has directed a builder to hand over a 712
sq
ft flat at
Sion
within four months or pay
Rs
1.04
crore
compensation to an ex-serviceman who had booked the flat in 2005, but has not got possession.

The commission observed, "Because of the delay in getting possession, complainant is deprived of his dream of having his own house... Rates of real estate have skyrocketed and increased geometrically, the opponents have utilized the hard-earned money of consideration paid by the complainant and one cannot say how long he will have to wait."

Amarjeet Singh Baryam Singh filed the complaint in the commission on July 19, 2011, against M/s Lakadawala Developers Pvt Ltd and its directors, for deficiency in service.

While the flat was booked in August 2005, the agreement was registered in March 2006. Singh paid the entire amount of Rs 24.65 lakh to the builder and construction was to be completed by the end of 2007. He contended that that he tried to contact the builder from time to time but never received possession. Singh alleged that due to this, he was financially overburdened and was undergoing tremendous mental agony. The builder submitted that the property was being developed under the Slum Rehabilitation Scheme and had encountered some trouble.

The builder alleged that the building was completed but had to be demolished due to some problems. The firm further contended that as per the agreement, the complainant is entitled to take possession of the flat on completion of the project and if it is delayed, the builder will not be liable. They said that they were willing to hand over possession after completion of the project or alternatively Singh could take a refund. The commission, however, said that the efforts made by the builder look half-hearted. "We are not convinced about the efforts taken by the opponents. Similarly, the complainant cannot wait indefinitely to have his own house," the commission said.

Taking into account the market rate of the property, the commission held that the current value of the flat was Rs 99.27 lakh.

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